Morgan Stanley upgrades Logitech, citing growth expectations and valuation, shares rise 2% premarket

From Investing.com: 2025-01-23 09:26:51

Morgan Stanley upgraded Logitech International to “Equal-weight” from “Underweight”, citing long-term growth expectations and valuation. Shares rose over 2% in premarket trading. Consensus forecasts predict a 4% annual growth rate through 2027, above expectations. Price target raised to $92, reflecting an 18x target P/E multiple for fiscal 2027 EPS of $5.10. Improved PC and peripherals data, less discounting, and disciplined expenses driving fiscal 2025 EPS forecast 3% above Street expectations.

Morgan Stanley sees potential catalyst if Logitech raises fiscal 2025 operating income guidance during next week’s earnings report. Expects stronger FY25 outlook with revenue of $4.43 billion, operating income of $757 million, EPS of $4.71. Balanced risks and rewards with bull case valuation of $122 and bear case of $64. Downside risks include weak consumer demand and import tariffs, while upside drivers could be stronger cycles, cost controls, or M&A.



Read more at Investing.com: Morgan Stanley raises rating, price target on Logitech, shares up By Investing.com